2024 -- S 2586

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LC004469

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- RENTAL VEHICLE SURCHARGE

     

     Introduced By: Senators Ruggerio, Lawson, Pearson, and Gallo

     Date Introduced: March 01, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 31-34.1-2 and 31-34.1-4 of the General Laws in Chapter 31-34.1

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entitled "Rental Vehicle Surcharge" are hereby amended to read as follows:

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     31-34.1-2. Rental vehicle surcharge.

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     (a) Each rental company shall collect, at the time a motor vehicle is rented in this state, on

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each rental contract, a surcharge equal to eight percent (8.0%) of gross receipts per vehicle on all

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rentals for each of the first thirty (30) consecutive days. The surcharge shall be computed prior to

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the assessment of any applicable sales taxes, provided, however, the surcharge shall be subject to

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the sales tax.

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     (b) The surcharge shall be included on the rental contract and collected in accordance with

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the terms of the rental contract. Sixty Twenty percent (60%) (20%) of the surcharge shall be

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retained by the rental company in accordance with this section and subsection (c), and forty eighty

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percent (40%) (80%) of the surcharge shall be remitted to the state for deposit in the general fund,

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on a quarterly basis in accordance with a schedule adopted by the tax administration. Each rental

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company collecting and retaining surcharge amounts may reimburse itself in accordance with this

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section from the funds retained for the total amount of motor vehicle licensing fees, title fees,

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registration fees and transfer fees paid to the state of Rhode Island and excise taxes imposed upon

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the rental companies’ motor vehicles during the prior calendar year; provided, that rental companies

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shall not be authorized to reimburse themselves for title fees, motor vehicles licensing fees, transfer

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fees, registration fees and excise taxes unless those fees and taxes shall have been assessed and paid

 

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in full to the state or appropriate city or town prior to any reimbursement. No reimbursement shall

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be allowed upon the prepayment of any fees or excise taxes.

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     (c) At a date to be set by the state tax administrator, but not later than February 15th of any

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calendar year, each rental company shall, in addition to filing a quarterly remittance form, file a

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report with the state tax administrator on a form prescribed by him or her, stating the total amount

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of motor vehicles licensing fees, transfer fees, title fees, and registration fees and excise taxes paid

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by the rental company in the previous year. The amount, if any, by which the surcharge collections

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exceed the amount of licensing fees, title fees, transfer fees, and registration fees and excise taxes

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paid shall be remitted by the rental company to the state of Rhode Island for deposit in the Rhode

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Island highway maintenance fund beginning in fiscal year 2015.

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     31-34.1-4. False reports — Penalties.

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     Any person making a false report to the tax administrator with the intent to misrepresent

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the amount of title fees, motor vehicle licensing fees, or transfer fees or excise fees paid or the

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amount of surcharges collected or who knowingly fails to collect the surcharge as required by this

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section shall be guilty of a misdemeanor and shall upon conviction of each offense be fined not

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more than one thousand dollars ($1,000) or be imprisoned for not more than one year, or by both

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fine and imprisonment. In addition to the above penalty, any person convicted of a violation of this

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section shall forfeit their right to reimbursement for expenses and shall remit the entire six percent

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(6%) eight percent (8%) surcharge collected to the state in a manner consistent with § 31-34.1-2.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- RENTAL VEHICLE SURCHARGE

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     This act would increase the amount of the rental vehicle surcharge retained by the state

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from forty percent (40%) to eighty percent (80%) and eliminates excise taxes imposed upon rental

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car companies. It would also require violators making false reports to forfeit their right to

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reimbursement for expenses and remit eight percent (8%) surcharge collected to the state.

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     This act would take effect upon passage.

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